Advertisement
Singapore markets close in 7 hours 56 minutes
  • Straits Times Index

    3,324.53
    +17.09 (+0.52%)
     
  • Nikkei

    38,599.07
    -121.40 (-0.31%)
     
  • Hang Seng

    18,112.63
    +174.79 (+0.97%)
     
  • FTSE 100

    8,163.67
    -51.81 (-0.63%)
     
  • Bitcoin USD

    66,682.70
    -1,637.36 (-2.40%)
     
  • CMC Crypto 200

    1,416.83
    +3.88 (+0.27%)
     
  • S&P 500

    5,433.74
    +12.71 (+0.23%)
     
  • Dow

    38,647.10
    -65.11 (-0.17%)
     
  • Nasdaq

    17,667.56
    +59.12 (+0.34%)
     
  • Gold

    2,320.20
    +2.20 (+0.09%)
     
  • Crude Oil

    77.89
    -0.73 (-0.93%)
     
  • 10-Yr Bond

    4.2380
    -0.0570 (-1.33%)
     
  • FTSE Bursa Malaysia

    1,610.17
    +1.22 (+0.08%)
     
  • Jakarta Composite Index

    6,831.56
    -6,850.10 (-50.07%)
     
  • PSE Index

    6,390.83
    -19.24 (-0.30%)
     

Olin Corp's Dividend Analysis

Exploring the Sustainability and Growth of Olin Corp's Dividends

Olin Corp (NYSE:OLN) recently announced a dividend of $0.2 per share, payable on June 14, 2024, with the ex-dividend date set for May 8, 2024. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Olin Corp's dividend performance and assess its sustainability.

What Does Olin Corp Do?

ADVERTISEMENT

Olin Corp manufactures and sells a variety of chemicals and chemical-based products. The company operates through three segments: Chlor Alkali Products and Vinyls, Epoxy, and Winchester. The Chlor Alkali Products and Vinyls segment, which generates the majority of revenue, offers critical materials used in diverse industries including cosmetics, textiles, crop protection, and fire protection products. The Epoxy segment provides epoxy resins crucial for paints and coatings, while the Winchester segment is renowned for its sporting ammunition and accessories under the Winchester brand. Predominantly, Olin Corp's revenue streams from the United States.

Olin Corp's Dividend Analysis
Olin Corp's Dividend Analysis

A Glimpse at Olin Corp's Dividend History

Olin Corp has upheld a consistent dividend payment record since 1985, distributing dividends quarterly. Remarkably, Olin Corp has increased its dividend annually since 2000, earning it the status of a dividend achiever a distinction awarded to companies that have consistently raised their dividends for at least 24 consecutive years. Below is a chart illustrating the annual Dividends Per Share to track historical trends.

Olin Corp's Dividend Analysis
Olin Corp's Dividend Analysis

Breaking Down Olin Corp's Dividend Yield and Growth

Currently, Olin Corp boasts a 12-month trailing dividend yield of 1.47% and a similar 12-month forward dividend yield, indicating stable expected dividend payments over the next year. The 5-year yield on cost for Olin Corp stock stands at approximately 1.47% today.

Olin Corp's Dividend Analysis
Olin Corp's Dividend Analysis

The Sustainability Question: Payout Ratio and Profitability

To evaluate the sustainability of the dividend, it's crucial to consider the company's payout ratio. Olin Corp's dividend payout ratio is currently 0.25, suggesting a healthy balance between distributing earnings as dividends and retaining income for future growth and stability. Additionally, Olin Corp's profitability rank is 6 out of 10, indicating fair profitability with net profits reported in 6 out of the past 10 years.

Growth Metrics: The Future Outlook

Olin Corp's growth rank of 6 suggests a fair growth outlook. The company's revenue per share and the 3-year revenue growth rate of approximately 13.30% per year outperforms about 66.96% of global competitors, showcasing a robust revenue model essential for sustained dividend payments.

Conclusion

Olin Corp's consistent dividend increases, stable payout ratio, and solid profitability and growth metrics paint a promising picture for current and potential investors. These factors collectively bolster the sustainability of dividends, making Olin Corp an attractive option for those seeking reliable income streams. For further insights and to discover other high-dividend yield opportunities, consider exploring the High Dividend Yield Screener available to GuruFocus Premium users.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

This article first appeared on GuruFocus.